IN­FLA­TION:

oc­curs when the prices of goods and ser­vices con­tin­u­ally and per­sis­tently in­crease. This has a neg­a­tive ef­fect on cur­ren­cies, and coun­tries with a high inf la­tion will typ­i­cally see their cur­ren­cies de­pre­ci­ate, re­sult­ing in less pur­chas­ing power.